Senate Passes ‘GENIUS’ Stablecoin Bill In Bipartisan Vote

Authored by Turner Wright via CoinTelegraph.com,

The Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, is one step closer to becoming law in the US after the US Senate voted to pass an amended version of the bill.

In a Tuesday vote of 68-30, a majority of the US Senate chose to pass the GENIUS Act roughly six weeks after Tennessee Senator Bill Hagerty introduced the legislation. The bill’s companion, the STABLE Act, may be considered in the House of Representatives next, where it could face additional proposals for amendments.

“With this bill, the United States is one step closer to becoming the global leader in crypto,” said Hagerty from the Senate floor before the Tuesday vote, adding: “Once the GENIUS Act is law, businesses of all sizes, and Americans across the country will be able to settle payments nearly instantaneously rather than waiting for days or sometimes even weeks.”

Source: US Senate

The GENIUS Act initially failed a cloture vote in the Senate in May in response to Democratic opposition to US President Donald Trump’s connections to the cryptocurrency industry. The Trump family has a significant stake in World Liberty Financial, which issued its own USD1 stablecoin in March. 

It’s unclear whether the stablecoin legislation will have enough support to pass in the House, where Republicans also hold a slim majority over Democrats. Trump’s AI and crypto czar, David Sacks, suggested in May that the president would support the bill passed by a Republican-controlled Congress.

Should payment stablecoins be recognized in a US regulatory framework, it could potentially open the floodgates for companies to issue their own tokens. Apple, Google, social media platform X and Airbnb were reportedly looking into the matter amid debate on the GENIUS Act, and two US senators questioned whether Meta might have the same plans if the bill were to pass.

“Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade,” said Treasury Secretary Scott Bessent in a Tuesday X post. “That scenario becomes more likely with passage of the GENIUS Act.”

Prior to the vote, Sen. Lummis (R-Wy.) told The Epoch Times that she was “excited about the momentum” regarding Washington’s acceptance of cryptocurrency.

“We just couldn’t in four years, we could get no momentum right here. And finally, we’ve got it. I don’t want to lose it,” Lummis said.

Market structure under consideration in the House

With stablecoin legislation moving closer to Trump’s desk, lawmakers in the House are still waiting for a vote on the CLARITY Act to establish clear market structure rules for digital assets.

Versions of the bill passed through the House Agriculture Committee and House Financial Services Committee last week and are expected to be taken up for a floor vote soon, but face similar pushback from some Democrats on the president’s crypto ties.

“In advancing these bills, lawmakers forfeited their opportunity to confront Trump’s crypto grift — the largest, most flagrant corruption in presidential history,” said Bartlett Naylor, financial policy advocate for consumer advocacy organization Public Citizen, in a statement shared with Cointelegraph on the GENIUS and CLARITY legislation. “These bills serve to legitimize what amounts to a massive scam with the American flag.”

House Financial Services Committee Chairman French Hill (R-Ark.) championed the bill, vowing to work with his lower chamber colleagues “to bring much-needed clarity and protections to the digital asset ecosystem.”

“Clear rules of the road for stablecoins are long overdue, and today we’re one step closer to creating a functional regulatory framework,” Hill said in a statement emailed to The Epoch Times. “I applaud the Senate’s passage of the GENIUS Act and the work of Chairman Scott, Senator Hagerty, and Senator [Cynthia] Lummis to make this historic day a reality.”

Lawmakers, including Sen. Bill Hagerty (R-Tenn.), say the framework will ensure the United States does not fall behind in global competitiveness and protect the dollar hegemony.

“A recent report forecasts that with a well-crafted U.S. regulatory framework, stablecoin issuers could become one of the top holders of U.S. Treasuries by the end of this decade—if not sooner,” Hagerty said on the Senate floor on June 11. “This would strengthen our fiscal position and cement the dollar’s status as the world’s reserve currency.”

Proponents say the Genius Act will make them more ubiquitous – Tether (USDT) and Circle’s USDC dominate the $228 billion market – as it could foster more stablecoins and consumer adoption.